Many crypto investors believe this year is going to be the best one so far. While waiting for the market to gain momentum, they’re busily looking for the most undervalued cryptocurrencies in 2020. And there are many good reasons for that.
I’m going to share my list below but, before I answer what are the most undervalued cryptocurrencies, first would like to make an introduction for new investors.
Why Invest in Undervalued Cryptocurrencies?
Investing in underpriced cryptocurrencies could give your portfolio a boost if they eventually see significant price appreciation. This follows the concept of value investing: investing in currencies that are undervalued by the market, and realizing profits when they hit their true potential.
When a currency is undervalued, that can be a bargain buy for investors. The payoff comes when the price begins to rise as the market catches on to its true worth. Investors then have an opportunity to sell, ideally for a sizable profit. This is the essential goal of investing: Buy low, sell high. The question is, how do you find undervalued cryptocurrencies to invest in?
Finding undervalued coins to invest in requires some skill and know-how when it comes to how the market works.
They are decentralized: No government or bank controls how they’re produced, what their value is, or how they’re exchanged. As a result, cryptocurrencies are worth whatever people are willing to pay or exchange for them.
Hence, supply and demand is the most important determinant of cryptocurrency prices. This is a basic economic principle. If a cryptocurrency has a high token supply with little demand from traders and users, then the cryptocurrency’s value will drop and vice versa.
Crypto does not have balance sheets. Prices are largely based on the promise of innovative new technologies and a whole lot of hype. This is why it can be so difficult to navigate the world of micro-cap coins, especially with issues such as scams and failed coins abounding.
It requires a discerning eye since sometimes these coins can appear to be underpriced when they actually aren’t.
But no worries! Keep reading this article and you will know the ten most undervalued cryptocurrencies in 2020 to keep an eye on.
1. Fusion (FSN)
Fusion is a public blockchain whose goal is to create an inclusive crypto-financial platform by providing cross-chain, cross-organization, and cross-datasource smart contracts. The project uses the Hierarchical Hybrid Consensus Mechanism (HHCM), which combines elements from PoW, PoS, and parallel computing with the aim of establishing an efficient and safe platform.
Its coin, Fusion owns the 190th place in the crypto world by capitalization with $16 million.
Why Fusion Is One of the Most Undervalued Cryptocurrencies?
FSN has some intriguing technology going. It is able to perform cross-chain asset swaps and tokenize things like insurance, loans, and derivatives.
These, undoubtedly, will be one of the most valuable services in the future, but for now, the marketing for this startup is just not compatible with other competing tokens, that is why fewer people know about it yet and therefore it is undervalued.
Importantly, Fusion leverages what it calls ‘Distributed Control Right Management’ as a security layer that secures crypto assets on the Fusion blockchain. The distributed storage of a private key ascertains means that no single node can gain access to assets, so it safer than other cryptos.
Fusion also employs multiple triggering modes, such as time and event-based triggers, into its smart contracts, which were made to meet the needs of complex financial smart contracts.
Right now, the price of FSN is $0.37, but its real value is around $10 and it’s going to be reached quickly once the new bull market starts. Buying this undervalued cryptocurrency now can make you huge profits in 2020.
2. Chainlink (LINK)
Chainlink, a data bridge facilitator and inventor of LINK, is a renowned decentralized medium for smart contracts to the real world and external entities. the LINK is on 14th position among all the cryptocurrency coins globally by capitalization with $1523 million. In simple words, it is a decentralized oracle service which enables the blockchained applications to access data outside the chain via requesting a contract to Chainlink’s network.
The whole off-chain data accessing process is efficient and simple because when a user requests an off-chain data for the first time from its own siloed network, Chainlink will perform the request matching operating and choose the most appropriate oracles in a decentralized manner.
Chainlink creates a difference from traditional oracles because it provides decentralizibility by allowing participants to provide smart contracts with access to off-chain data sources through a decentralized oracles network on the Link Blockchain to authenticate and forward sensitive information, thereby minimizing trust issues.
What Makes Chainlink an Underpriced Cryptocurrency?
Blockchain technology has been growing by leaps and bounds and almost every other person is keeping an eye on valuable investment opportunities in cryptocurrency. So, that makes services like Chainlink essential.
Chainlink enjoys the benefits of early entrance into the industry and has garnered a lot of support and partnerships outside the blockchain industry.
The ‘Herd Mentality’ is in full swing because many reputed industrialists are coming forward in support of Chainlink.
Chainlink has also a unique and competitive edge due to its strong market footprint and experienced marketing team.
LINK price right now is $4.45 and just a year ago it was valued at 60 cents. The price of this cryptocurrency is rising quickly across the popular exchanges and has lots of room to grow.
For more information on Chainlink and the exchanges where you can buy it, visit: https://coinmarketcap.com/currencies/chainlink/
3. ARK (ARK)
Ark is a decentralized company developing a next level blockchain, with the main scope to create the possibility to have different blockchains communicating between them. The technology is called ‘SmartBridge”. Also, right now, the focus is on “Vendor Field” a 64 bytes custom available space on Ark blockchain for each transaction.
Its coin, ARK is ranked 147 globally with a market capitalization of $29 million.
Why Should I Invest in ARK Cryptocurrency?
The ultimate goal of Ark is to make blockchains readily adaptable for any company that is willing to do so. The feature of Interoperability is a bonus.
Ark is a cryptocurrency that aims to connect the blockchain of every single existing cryptocurrency. Ark’s official website says:
We aim to create an entire ecosystem of linked chains and a virtual spider web of endless use cases that make ARK highly flexible, adaptable, and scalable. ARK is a secure platform designed for mass adoption and will deliver the services that consumers want, and developers need
A positive point from the environmental and anti-centralization perspective is that the ARK token runs itself on the DPoS consensus system. Also, almost any developer can build on top of Ark because it uses alternative programming languages. Support already exists for 10+ languages and this count still goes on.
If Ark developers succeed in achieving their plans, this crypto will be among the most powerful stimulators of blockchain technology adoption and continued development.
The price od the Ark coin right now is $0.23, but back in early 2018, it was near $10 per coin. In the next bull run, Ark is probably going to reach $5 and beyond that, which makes it an undervalued cryptocurrency with great earning potential.
4. Aion (AION)
Aion, a multi-tier block-chained network, is designed with a futuristic approach and aiming at the co-existence of multiple blockchains to formulate solutions for unique industry problems and to power and meet the demands of modern world’s requirements. Aion is focused on becoming a go-to choice protocol for powering these blockchains, thereby enabling a decentralized and efficient system to be built.
The company also has a coin named after it, Aion, which holds the 104th spot in the cryptocurrency industry by capitalization with $54 million. Aion ensures the smooth transfer of assets and smart contracts logic across the blockchain via using token bridges. It provides benefits and incentives to the notes and validators that maintain the bridges.
Why Aion is an Undervalued Cryptocurrency?
The multi-tiered blockchain network, Aion, is now broadening its horizons towards Japan, Korea, and China. This powerful upward expansion has led the prices to hit significant resistances but a surge is witnessed in a sharp increase of the volume.
The Aion network creates a difference by providing the unique interoperability features which are a major thing missing in the majority of blockchains. On the other hand, its dedicated development team is 24/7 focused on ensuring that the root chain of Aion is leveraged. It ensures that Aion will not be only running block-chained apps but also monetizes the inter-chain bridges, creates the new block-chained platforms, and secures the entire network.
With the current price of $0.12 only, Aion is considered to be very cheap cryptocurrency. Just a few years ago, its price was between $5 and $10. If Aion regains only half of its old price, it is going to make a fortune to Aion hodlers. With all its uniqueness and qualities, I don’t see why it should not do that during 2020.
For more information on Aion and the exchanges where you can buy it, visit: https://coinmarketcap.com/currencies/aion/
5. Cosmos (ATOM)
Cosmos (ATOM) is a decentralized ecosystem of independent blockchains which is going to be the foundation of internet technology in the next generation. It aims to become an ‘internet of blockchains’.
Its architecture is based on various independent blockchains called ‘Zones’ which are linked to a central blockchain called ‘Hub’.
Its coin, ATOM owns the 25th place in the crypto world by capitalization with $580 million.
What Makes Cosmos an Undervalued Cryptocurrency?
Cosmos is a project that was bootstrapped and did a very small funding event in 2017 and since then, it has scaled into one of the biggest organic communities. This altcoin is extremely exciting as it solves the scalability problem.
So, what happened with Ethereum in the period 2015–2017, is now happening with Cosmos: Dozens of real, interesting projects that people are building — and they’re building it because they know it’s a very useful technology. IRISnet, Sentinel, Agreements Network, FOAM, and TruStory have chosen the Cosmos Network to host their applications.
At its ATH, the Cosmos price was above $6.5 and right now it is $3.17 only. The project is doing very well and many investors consider it seriously undervalued. We can expect the Cosmos price to hit $10 during the next crypto bull market.
6. Holo (HOT)
Holochain is a distributed computing network that is expected to perform faster than the blockchain technology itself. It is said that holos have infinite scaling capacity through peer-to-peer networking so that as distributed applications are added, there is no degradation in the performance of the network.
Its coin, HOT owns the 64th place in the crypto world by capitalization with $104 million.
The network behind the crypto — Holochain, is a scalable, agent-centric distributed computing platform. It works by shifting from a data-centric to an agent-centric model which lets clients host dApps on their computers while making money from it.
What Makes Holo an Attractive Investment?
More than 1,461 commits were registered in the network in 2019, which means a lot of work was done by the network. How it could be one of the most undervalued cryptos in the world? Well, it is because nobody is doing research in the crypto industry, and so it is still cheap.
Holochain green paper is a well-stipulated and detailed roadmap and it opens the door for hosting and sharing information while generating revenues to main street people.
The team behind this network is a well-known group of people with years of experience in the industry. All that could boost its current price from $0.0006 to $0.002 and beyond. Some serious earning potentials lay here.
7. ICON (ICX)
ICON is a technology and network framework which was designed to allow independent blockchains to interact with each other.
Its coin, ICX owns the 43rd place in the crypto world by capitalization with $181 million.
Each ICX has the right to stake and vote for validators or block producers in the ICON network. It is also used for transaction fees/computations for smart contracts.
Is Icon Really Cheap Right Now? What Makes It a Good Investment?
ICX is probably the most severely undervalued cryptocurrency on the market. This is an opportunity to buy as much as you can! Its partners are a lot of big names and it has the support of a country behind it. Its’ main net has already been launched. We already know some upcoming ICO’s endorsed by the ICX team so we know they aren’t scams.
Icon hit its all-time low in mid-January this year. Now, although it has recovered, it still is not even close to its original value. So it has got to be one of the safest coins to invest in.
It has accomplished far more than other coins in its field, as it has far more partners, better vision, and drive. This coin absolutely should currently be in the top 10 and it is only several months old.
With all this information in mind, we can expect ICX to rally from $0.33 to $7.5 at least where it was a few years ago.
8. Quant (QNT)
Quant incorporates the Overledger blockchain OS and QNT token, both made to ensure interoperability between multiple blockchains and allowing connections between global networks and chains with more flexibility.
The QNT coin ranks at the 66th place in the crypto world by capitalization with $94 million.
Why QNT is Undervalued and What Makes it a Good Investment in 2020?
Quant Network has solved universal DLT interoperability at scale. It is the only altcoin that has been able to do this at scale with any and all systems as of today, bringing an enormous first-mover benefit to them whilst DLTs Proofs of Concept and implementations are increasing.
Quants are patented, distinctive, and embraced. Quant Network can attract value because it solves an urgent problem in the DLT space, that is why these networks are able to communicate with each other in a universal way and it solves them in a remarkable and unique method.
Quant is currently focusing on every major industry, including but not limited to:
• Supply chain and logistics retail chains
• Healthcare interoperability
• Multi-chain digital asset industry plus wealth management firms
• Traditional finance exchanges and derivatives
• Regulation tech
• Taxation and auditing
• Crime agencies
• Legal tech
• Artificial intelligence and user entity behavior analytics, and many more.
So what Quant investors can expect price-wise? At least a run from $7.66 to $12-$15.
For more information on Quant and the exchanges where you can buy it, visit: https://coinmarketcap.com/currencies/quant/
9. Bitcoin (BTC)
Altcoins are always an interesting investment option, but we should not forget Bitcoin. Even at the current price of $10,000 it is still one of the most undervalued cryptocurrencies.
Bitcoin is a type of decentralized cryptocurrency having no central bank or an administrator and it can easily be forwarded from one user to the other on a peer-to-peer bitcoin network thereby eliminating the need for intermediaries. A bitcoin is nothing but a computer file stored in a digital wallet app on any smartphone or PC.
It is the most popular and strongly established cryptocurrency and its popularity is increasing with each passing day.
BTC holds the first spot in the crypto universe with a gigantic market capitalization of $178,877,586,882.
Is Bitcoin Still Undervalued?
Bitcoin is the topmost liquidated and expensive cryptocurrency in the market having the greatest share of value in terms of capitalization. But, why it is called an undervalued secret? Let’s know why:
The Bitcoin is still cheap and has room for investment because every time a new coin is launched in the market, the intrinsic value of Bitcoin increases. So, it can be rightly said that the BTC is the reserve currency in the crypto sphere.
It has the strongest client base because most people know BTC as the only cryptocurrency. Most of the traders have actually bought tokens and gained exposure and used their profits to purchase BTCs.
Last but not the least, Bitcoin has an ever-growing infrastructure which has room for supporting mass adoption both for institutional and retail investors e.g. traditional-like investment vehicles and custody solutions. All this paired with the incoming global economic crisis could push Bitcoin from $10,000 to $75,000 and beyond in late 2020.
10. Polkadot (DOT)
Polkadot, a heterogeneous multi-chain technology, allows the seamless operations of multiple blockchains together. But, Polkadot is the odd one out among this list because their coin, DOT, is not even launched in the market. But, the good news is that you can start your investment right now i.e. you can buy the futures contract known as IOUs
Why Polkadot Is on the List of the Most Undervalued Cryptocurrencies?
Polkadot works on the principle of interoperability i.e. its main aim is to enable the seamless operations of multiple blockchains together. Once, it is launched, it will be adopted by masses owing to its interoperability features.
It provides unmatched economic scalability by allowing a common set of validators to secure various blockchains.
Polkadot also enables transactional scalability as it spreads the transactions over a network of multiple parallel blockchains.
The novel data availability features and security schemes of Polkadot make it possible for blockchains to interact with each other in a logical way. The chains remain autonomous yet together.
Furthermore, the heterogeneous multi-chain technology, Polkadot has a very balanced governance system where each stakeholder is valued. The network upgrades are coordinated on-chain and ratified autonomously which ensures that the network’s development aligns with the community values and avoids stagnation.
For more information on this crypto and the exchanges where you can buy it, visit: https://coinmarketcap.com/currencies/polkadot-iou/
In the longer term, it is fair to say that investing in these most undervalued cryptocurrencies in 2020 is a once-in-a-lifetime event. Altcoins are emerging into more mature assets. There are many altcoins in the market that are backed by strong networks and revolutionary technologies. So, invest now, and gain later.